A firm's capital structure can significantly affect the firm's value by affecting its risk and return
Indicate whether the statement is true or false
TRUE
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In CASE 20.1 Smith v. Van Gorkom (1985) discussed in the text, plaintiff-shareholders alleged the directors were grossly negligent in failing to inform themselves adequately before making a decision about a merger. How did the court rule and why?
a. For plaintiff-shareholders, because the board failed to obtain adequate information on merger terms and therefore was not protected by the business judgment rule. b. For directors, because the board was protected by the business judgment rule since there was no conflict of interest. c. For the directors, but the board was not protected by the business judgment rule but rather by the business merger rule. d. For the directors, because the board was protected by the business judgment rule since fraud could not be established.
A candidate key must satisfy all of the following conditions EXCEPT:
A) the key must uniquely identify the row. B) the key must indicate the row's position in the table. C) the key must be nonredundant. D) each nonkey attribute is functionally dependent upon it.
REI is an example of a _________-and-mortar business.
Fill in the blank(s) with the appropriate word(s).
Express Travel decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of annual order value for general delivery costs, $2.50 per item, and $45 for delivery.A year later, Express Travel collected the following information for three of its customers:Cost driverCustomer A Customer B Customer CNumber of orders 18 8 12 Number of deliveries 10 10 24 Total number of items 2,000 4,000 12,000 Annual order value$120,000 $80,000 $100,000 What are the total delivery costs charged to Customer A during the year?
A. $20,235. B. $5,738. C. $6,938. D. $6,650.